New Delhi, May 29: India’s manufacturing sector continued to show resilience as factory activity expanded on the back of improving domestic demand, rising export orders and stronger business confidence. Industry leaders said the steady increase in production reflects growing economic momentum despite ongoing global uncertainties.
Manufacturing companies across sectors including automobiles, engineering goods, electronics, pharmaceuticals and consumer products reported higher production levels during the month. Businesses attributed the improvement to stronger consumer spending, better inventory management and increased infrastructure-related demand.
Industry associations noted that new domestic orders remained healthy, while export-oriented manufacturers benefited from improving overseas demand in selected international markets. Companies also increased procurement of raw materials to meet anticipated growth in production during the coming months.
The expansion has encouraged firms to invest in additional production capacity, automation technologies and workforce development. Several manufacturers announced plans to modernise factories through digital manufacturing systems aimed at improving efficiency and reducing operational costs.
Business confidence remained positive as stable government policies and infrastructure spending continued to support industrial growth. Executives expressed optimism that continued investment in logistics, transport and industrial corridors would further strengthen manufacturing competitiveness.
Financial experts observed that improving factory activity could contribute positively to employment generation and overall economic growth. Increased production often leads to higher demand for skilled labour, transportation services and supply chain operations.
Small and medium enterprises (SMEs), which form a significant part of India’s manufacturing ecosystem, also reported improved order books. However, many businesses highlighted challenges related to input costs, global commodity price fluctuations and financing requirements.
The government continues to promote manufacturing through production-linked incentive (PLI) schemes, ease-of-doing-business reforms and infrastructure development projects designed to attract domestic and foreign investment.
Economists believe sustained manufacturing expansion will strengthen India’s position as a global production hub while supporting exports and industrial employment. They emphasised that continued policy stability and technological adoption will remain essential for maintaining long-term growth.
With industrial activity showing consistent improvement, businesses are optimistic that the manufacturing sector will remain one of the key drivers of India’s economic expansion throughout 2026.